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Caution Needed about ACTA's HST Advisory Notice to Travel Agencies in Ontario and British Columbia
Toronto, 18 December 2009: ARTA Canada has received inquiries from its members about an HST (Harmonized Sales Tax) advisory issued by ACTA to travel agencies in Ontario and British Columbia.
ARTA Canada President Bruce Bishins has been working with provincial authorities for the past eight months in his capacity as an airline tax expert and where he consults to the industry to provide guidance on key issues which all sellers of travel will face when the HST becomes effective in July 2010.
Contrary to the advisory issued by ACTA, the implied impact of HST is not limited to retailers in Ontario and British Columbia. The HST will be a matter of concern for all travel agencies, regardless of location, for any applicable transaction (where GST currently applies) for travel originating, as proposed, in either of the two provinces and for various services and products delivered in those provinces.
Bishins has been working with provincial officials to address a wide array of issues including coding, exchanges, additional collections, service charges, refunds, deposits, final payments, exemptions, multiple tickets and continuous journeys.
ARTA Canada cautions its members that ACTA's advisory is premature as many key matters are still under consideration and discussion. As soon as information is available which would definitively address the broader scope of HST issues, ARTA Canada will release a comprehensive HST instruction advisory.
About ARTA Canada
ARTA Canada is the largest non-profit federally incorporated professional association of travel retailers in Canada, the members of which consist exclusively of travel agencies and travel agents. In addition to advocating fair and equitable treatment of travel consumers, ARTA Canada represents the commercial and strategic interests of its member travel agencies and travel agents in a variety of national and provincial domains including regulatory and legislative matters, automation, technology, sales and marketing, and distribution.
ARTA Canada is the strategic partner in Canada of the U.S.-based Association of Retail Travel Agents (ARTA). ARTA Canada is the Canadian member of UFTAA, the United Federation of Travel Agents' Associations. To join ARTA Canada, complete details and online membership application and secure payment are available on the ARTA Canada web site at www.artacanada.ca/join. |